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People can now choose from over 2,230 savings account deals to boost their finances

People can now choose from over 2,230 savings account deals to boost their finances

Daily Record7 days ago

Finance expert reveals the choice of savings products are 'at record levels but some rates at a two-year low'.
Savers have a record high choice of deals to select from, but some rates have been falling to their lowest level in around two years typically, according to a financial information website's data.
Moneyfacts counted 2,235 savings deals, including cash Isas, at the start of June, marking the highest total on its records, going back to February 2007. Some 639 cash Isa deals were available at the start of June, which was also a record high.
The number of savings providers rose to 153, up from 152 last month, which was another high for Moneyfacts' records. The website tracked data from the first available day of each month for the research.
The figures were released ahead of the next Bank of England base rate decision this week. Many economists have predicted the Bank of England's Monetary Policy Committee (MPC) will opt to keep rates on hold at 4.25 per cent when it meets on Thursday, following previous cuts.
New UK inflation figures for May will also be released on Wednesday. Rising living costs eat into the returns that savers can make on their cash.
According to Moneyfacts' figures, the average easy access savings rate on the market fell to 2.71 per cent at the start of June, from 2.78 per cent at the start of May.
In June 2024, the average easy access savings rate on the market was 3.12 per cent.
Moneyfacts said the June 2025 figure is the lowest since July 2023, when the average easy access savings rate on the market was 2.41 per cent.
The average notice savings account rate was also at its lowest level since July 2023, falling to 3.67 per cent in June. The typical easy access Isa rate was 2.98 per cent at the start of June - its lowest level since August 2023.
The average notice Isa rate fell to 3.55 per cent - its lowest level since July 2023. Meanwhile an average one-year fixed bond on the market pays 4.01 per cent - the lowest average rate recorded for the product since May 2023.
The average one-year fixed Isa rate fell to 3.94 per cent - also the lowest level since May 2023.
Rachel Springall, Finance Expert at Moneyfacts, said: 'Savers may be encouraged to see the array of providers and overall choice of deals has reached a record high. The steady rise of challenger banks has been a big contributing factor over recent years, and the variety of accounts to land onto the market can be useful for customers who have diverging needs.
'However, the recent cut to the Bank of England base rate may well dampen such growth in product choice and new rivals, as it has led to cuts to variable savings rates. As a result, the average easy access and notice rates, as well as their cash ISA counterparts, have fallen to their lowest levels in almost two years.'
She continued: 'Those savers who prefer to secure a guaranteed return may wish to note the falls to the one-year and longer-term fixed bond and cash ISA rates month-on-month, with all rates apart from the one-year fixed bond, sitting below 4 per cent. The steady repricing of fixed bonds included some that had been on sale for some time, which has led to a rise in the average shelf-life of a bond to 49 days, up from 36 days a month prior.
'Providers have been monitoring movements in swap rates to gauge future rate expectations, but they must balance cuts or rises against their deposit funding targets.
'It is evident that cash ISAs are highly sought after, with the latest statistics from the Bank of England revealing a record monthly high of deposits of around £14bn during April. The noise surrounding cash ISA reforms and the rush of savers looking to protect their hard-earned cash from tax would have been a key influence in the significant deposits.'
Ms Springall added: 'The popularity of cash ISAs is expected to linger, as millions of people are expected to pay higher-rate tax at 40 per cent this tax-year. Thankfully the choice of cash ISAs continues to thrive, reaching a new record high this month. Providers must continue to work hard to support their new and existing customers and savers must ensure they stay within their Personal Savings Allowance (PSA) and take full advantage of their ISA allowance when reviewing their pots or shopping around for a new deal.'

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